A Complete Guide To Renewable Business Energy

As energy costs continue to rise and sustainability becomes a priority, UK businesses are re-evaluating their energy choices. Switching to renewable business energy is no longer a niche move; it’s a smart and forward-thinking strategy that can reduce operating costs, meet environmental targets, and future-proof your company. For a comprehensive step-by-step guide, see our article on How To Switch Your Business Energy.

Whether you're an SME or a large enterprise, this guide will help you navigate the world of renewables, understand the options available, and make informed decisions that benefit your bottom line and the planet. From choosing a supplier to getting certified, we’ve covered all you need to know to confidently switch to green energy in 2025.

Why Renewable Energy Matters for UK Businesses 

Adopting renewable energy is not just about cutting emissions; it’s a step towards long-term cost efficiency, brand credibility, and regulatory compliance. Here’s why it matters more than ever:

• Energy independence: Reduces reliance on fossil fuels and volatile global markets
• Environmental responsibility: Meets CSR goals and reduces your carbon footprint
• Cost savings: Many renewable tariffs offer lower long-term costs. For specific tips on How To Find The Cheapest Business Energy Tariff In The UK, see our dedicated article
• Brand value: Attracts eco-conscious consumers and partners
• Regulatory compliance: Supports net-zero goals outlined in the UK’s energy strategy

Energy is a major cost for most businesses. But the volatility of UK wholesale gas & electricity prices can create budgeting nightmares. Renewable energy offers a way to stabilise costs and gain more control over your energy strategy.

Types of Renewable Energy for Businesses 

Understanding your renewable energy options can help you choose the best fit for your operations. The right solution depends on your location, energy needs, and whether you're looking to install your own system or simply switch to a green tariff.

1. Solar Energy 

One of the most accessible forms of renewable energy for businesses:

• Ideal for buildings with roof space
• Low maintenance once installed
• Government incentives may be available

Solar power is scalable, meaning it works well for both small businesses and large industrial operations. With battery storage, businesses can store energy generated during the day for use at night or during peak hours.

2. Wind Energy 

More common for businesses with land access or in windy regions:

• Onshore turbines provide consistent energy
• Best suited for rural or coastal areas

Small-scale wind turbines can be installed for personal use, while larger setups can generate enough power for entire facilities. Wind energy is most effective when assessed by a site-specific wind study.

3. Biomass 

A renewable alternative that converts organic materials into energy:

• Useful for industrial processes
• Requires regular fuel supply (wood pellets, organic waste)

Biomass systems are often used by agricultural businesses and manufacturing plants that generate organic waste. They are efficient and can be used for both heating and power.

4. Hydropower 

Although less common, some businesses can tap into local water sources:

• Reliable and consistent energy
• Requires location-specific conditions

Micro-hydropower systems are ideal for businesses located near flowing water sources. They can generate constant power and have minimal environmental impact if managed correctly.

How to Switch to Renewable Energy 

Switching to renewable business energy is simpler than many think. With a growing number of green tariffs, supportive legislation, and supplier-provided switching services, businesses can now make the transition with minimal disruption. Whether you're looking to install solar panels or simply want to switch to a REGO-backed supplier, the steps are clear and achievable.

Here’s how to get started:

Step 1: Review Your Current Energy Usage 

• Use your recent energy bills to assess usage
• Familiarize yourself with important details such as your MPAN and MPRN numbers, which are essential for identifying your supply points
• Identify peak consumption periods
• Understand your load profile and seasonal trends

This helps determine what type of renewable solution is best suited to your energy demands.

Step 2: Compare Renewable Tariffs 

• Use business energy comparison sites
• Request quotes from green energy suppliers
• Look for REGO (Renewable Energy Guarantee of Origin) certified tariffs

Choosing a certified green tariff ensures your energy is genuinely sourced from renewables. It also allows you to promote your sustainability credentials with confidence.

Step 3: Contact Suppliers and Switch 

• Switching takes just a few minutes with the right provider
• Most suppliers handle the transition for you
• Ensure no hidden exit fees or contract issues with your current provider

Many suppliers now offer contract flexibility, energy audits, and account management tools to support a smooth switch.

Government Support for Renewable Business Energy 

The UK government supports green initiatives with a wide range of schemes designed to make the transition to renewable energy more accessible and affordable for businesses. These programmes offer financial relief, tax benefits, and revenue opportunities for companies committed to sustainable operations.

• Smart Export Guarantee (SEG): Earn money by exporting unused electricity generated on-site (e.g. solar panels) back to the National Grid. This scheme ensures small-scale generators receive a fair market price for their exports.
  
• Climate Change Levy (CCL) discounts: Applicable to businesses using REGO-certified renewable energy or participating in a Climate Change Agreement. This can significantly reduce your energy tax liability.
  
• Enhanced Capital Allowances (ECAs): Offer 100% tax relief on qualifying energy-efficient and low-carbon technology investments, such as LED lighting, heating systems, or energy-saving machinery.

Beyond national support, regional grants and funding options are available through Local Enterprise Partnerships (LEPs) and devolved government bodies across Scotland, Wales, and Northern Ireland. These may include capital grants, energy audits, or interest-free loans tailored to local sustainability goals.

Costs and ROI of Renewable Energy 

While installation or switching may have upfront costs, the long-term savings are significant. Most businesses see a return within a few years.

What to Expect:

• Solar PV installation: £5,000–£15,000 depending on size
• Wind turbine setup: Can range from £20,000 upwards
• Average ROI: 5–8 years, depending on the system and usage

Other financial benefits include:

• Lower monthly energy bills
• Increased property value
• Possible SEG payments for exported energy

Choosing the Right Renewable Energy Supplier 

Not all energy suppliers are equal. Look for:

• Transparency on energy sourcing
• Customer service ratings
• Flexible contract terms
• Added services like smart metering or energy audits

Shortlist green suppliers like Octopus Energy, Good Energy, or Ecotricity, which specialise in renewable business tariffs. These providers are also known for excellent customer service and innovative green tech solutions.

Energy Audits: The First Step to Greener Operations 

Before switching, businesses should conduct an energy audit. It’s a practical and often free first step that identifies inefficiencies and highlights where renewable energy can make the biggest impact.

Benefits of Energy Audits:

• Pinpoint high-energy-consuming equipment
• Identify insulation or lighting upgrades
• Reveal behavioural patterns impacting energy usage
• Set benchmarks for future energy performance

How to Get One:

• Some suppliers offer free audits as part of the switching process
• You can hire a qualified energy consultant or check with local councils for recommendations

Energy audits can also reveal opportunities for additional savings through process improvements and staff training.

Green Business Certifications in the UK 

Switching to renewables also helps you qualify for well-respected certifications that build trust and prove your sustainability credentials.

Common Certifications:

• ISO 14001: Environmental management systems
• Carbon Trust Standard: For verified reductions in carbon emissions
• B Corp Certification: For businesses balancing purpose and profit

These certifications are often recognised in procurement processes and can improve your access to funding, partnerships, and environmentally conscious customers.

Case Study: A Manufacturing Firm’s Green Shift 

A medium-sized manufacturing business in Manchester switched from a standard variable tariff to a 100% renewable electricity plan. They also installed rooftop solar panels.

Results:

• Cut energy costs by 28% annually
• Achieved ISO 14001 certification
• Improved brand image with eco-conscious clients
• Qualified for green business grants from the Greater Manchester LEP

Common Myths About Renewable Energy 

Let’s bust a few myths:

• Myth: "It’s too expensive."
  Reality: Long-term savings often outweigh initial costs.
• Myth: "It’s unreliable."
  Reality: Modern green tariffs come with grid stability and energy storage options.
• Myth: "It’s just for big companies."
  Reality: SMEs can easily switch to green tariffs without infrastructure changes.
• Myth: "Switching is too complicated."
  Reality: Most suppliers offer full-service switching with zero downtime.

Key Considerations Before You Switch 

Before committing, ask yourself:

• Can your property support renewable installations?
• Do you want to generate your own energy or buy from a green supplier?
• Is there a budget allocation for long-term investment?
• Are there any grants or tax incentives you can apply for?
• Will green energy impact your operational hours or equipment?

Consult with energy experts or request a free audit from your prospective supplier.

Conclusion: Take the Green Step Forward 

Making the switch to renewable business energy isn’t just good for the planet; it’s a savvy move for your finances and your brand. With increasing government support, growing customer expectations, and rising fossil fuel prices, the time to act is now.

Start by comparing green tariffs, exploring installation options, and using available grants to reduce costs. Whether you're a café in Brighton or a factory in Birmingham, clean energy is now within reach.

Taking even a small step like switching your tariff can set your business on a path to sustainability, savings, and long-term growth.

Summary Points:

• Renewable energy can cut costs and boost sustainability.
• The UK offers incentives and schemes to support green adoption.
• Switching suppliers is fast, easy, and often handled for you.
• Energy audits and certifications add value and credibility.
• Investing now future-proofs your business and strengthens your brand.

Frequently Asked Questions 

Q1: Can small UK businesses afford to switch to renewable energy?
A1: Yes. Many green tariffs are competitively priced, and installation isn’t required unless you choose to generate your own energy.

Q2: How do I know if a tariff is truly renewable?
A2: Look for suppliers that offer REGO-certified tariffs. This guarantees the electricity is sourced from renewables.

Q3: What’s the easiest way to start switching?
A3: Compare suppliers online, request quotes, and choose one that fits your budget and sustainability goals.

Q4: Do I need to install solar panels or turbines to go green?
A4: No. You can simply switch to a supplier offering 100% renewable energy without installing anything.

Q5: Will renewable energy protect me from future price increases?
A5: Yes, to an extent. Renewable tariffs tend to offer more price stability compared to fossil-fuel-based energy.